HomeMy WebLinkAboutAgenda - 09-06-2016 - 4-b - 2017 Reappraisal Schedule of Values - Submission 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 6, 2016
Action Agenda
Item No. 4-b
SUBJECT: 2017 Reappraisal Schedule of Values - Submission
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Advertising Notice Dwane Brinson, Tax Administrator
North Carolina General Statute 105-317 919-245-2726
Frequently Asked Questions on
Revaluations
PowerPoint Presentation
UNDER SEPARATE COVER
2017 Reappraisal Schedule of Values
ON FILE IN TAX ADMINISTRATION
OFFICE AND CLERK'S OFFICE
AND AVAILABLE
ELECTRONICALLY AT:
http://www.orangecountync.gov/departm
ents/tax/revaluation.php
PURPOSE: To receive the proposed 2017 Reappraisal Schedule of Values (SOV), review a
statutory-compliant timeline of the proposed adoption process, and schedule a public hearing on
the SOV for the Board's September 20, 2016 regular meeting.
BACKGROUND: Per North Carolina General Statute (NCGS) 105-317(c)(1), "The [Tax]
[A]ssessor shall submit the proposed schedules, standards, and rules to the board of county
commissioners not less than 21 days before the meeting at which they will be considered by the
board. On the same day that they are submitted to the board for its consideration, the assessor
shall file a copy of the proposed schedules, standards, and rules in his [or her] office where they
shall remain available for public inspection."
In addition, NCGS 105-317(c)(2) states "Upon receipt of the proposed schedules, standards,
and rules, the board of commissioners shall publish a statement in a newspaper having general
circulation in the county stating:
a. That the proposed schedules, standards, and rules to be used in appraising real property
in the county have been submitted to the board of county commissioners and are
available for public inspection in the assessor's office; and
b. The time and place of a public hearing on the proposed schedules, standard, and rules
that shall be held by the board of county commissioners at least seven days before
adopting the final schedules, standards, and rules."
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The timeline for the 2017 Reappraisal Schedule of Values adoption process is as follows:
• September 6, 2016: Submission to Orange County Board of Commissioners
• September 7, 2016: Advertise in newspaper
• September 20, 2016: Public hearing on SOV
• October 4, 2016: Adoption of SOV
• October 5, 2016: Publish 1st notice of adoption
• October 12, 2016: Publish 2nd notice of adoption
• October 19, 2016: Publish 3rd notice of adoption
• October 26, 2016: Publish 4th notice of adoption
• November 3, 2016: Last day for taxpayer to appeal the SOV
FINANCIAL IMPACT: There is no financial impact associated with receiving the SOV and
scheduling the public hearing.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
RECOMMENDATION(S): The Manager recommends that the Board receive the proposed
schedules, standards, and rules from the Tax Administrator; schedule the public hearing at the
Board's September 20, 2016 regular meeting concerning their adoption; and direct staff to
publish the proper advertisements concerning the public inspection and public hearing times in
the Durham Herald Sun, News of Orange and Chapel Hill News.
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Notice
Per North Carolina General Statute 105-317(c) (1) (2), The County Assessor, on
September 6, 2016, has submitted the proposed 2017 Schedules of Rules, Standards and
Values for Market Value and Present-Use Value for the 2017 countywide reappraisal, to
the Orange County Board of Commissioners. The proposed Schedules of Rules,
Standards and Values will be available for public inspection in the offices of the County
Assessor at 228 S. Churton Street, Hillsborough,NC, and Clerk to the Board of
Commissioners office at 200 S. Cameron St, Hillsborough, NC during regular office
hours of 8:00 AM to 5:00 PM, Monday thru Friday. There will be a public hearing
regarding the proposed Schedules of Rules, Standards and Values at the regularly
scheduled Board of County Commissioners meeting on September 20, 2016 located at
the Southern Human Services Center at 2501 Homestead Road, Chapel Hill,NC 27516.
The meeting will begin at 7pm.
8/22/2016 Article 19
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Article 19.
Administration of Real and Personal Property Appraisal.
§ 105-317. Appraisal of real property; adoption of schedules, standards, and rules.
(a) Whenever any real property is appraised it shall be the duty of the persons making appraisals:
(1) In determining the true value of land, to consider as to each tract, parcel, or lot separately
listed at least its advantages and disadvantages as to location; zoning; quality of soil;
waterpower; water privileges; dedication as a nature preserve; conservation or preservation
agreements; mineral, quarry, or other valuable deposits; fertility; adaptability for agricultural,
timber-producing, commercial, industrial, or other uses; past income; probable future income;
and any other factors that may affect its value except growing crops of a seasonal or annual
nature.
(2) In determining the true value of a building or other improvement, to consider at least its
location; type of construction; age; replacement cost; cost; adaptability for residence,
commercial, industrial, or other uses; past income; probable future income; and any other
factors that may affect its value.
(3) To appraise partially completed buildings in accordance with the degree of completion on
January 1.
(b) In preparation for each revaluation of real property required by G.S. 105-286, it shall be the duty of
the assessor to see that:
(1) Uniform schedules of values, standards, and rules to be used in appraising real property at its
true value and at its present-use value are prepared and are sufficiently detailed to enable
those making appraisals to adhere to them in appraising real property.
(2) Repealed by Session Laws 1981, c. 678, s. 1.
(3) A separate property record be prepared for each tract, parcel, lot, or group of contiguous lots,
which record shall show the information required for compliance with the provisions of G.S.
105-309 insofar as they deal with real property, as well as that required by this section. (The
purpose of this subdivision is to require that individual property records be maintained in
sufficient detail to enable property owners to ascertain the method, rules, and standards of
value by which property is appraised.)
(4) The property characteristics considered in appraising each lot, parcel, tract, building,
structure and improvement, in accordance with the schedules of values, standards, and rules,
be accurately recorded on the appropriate property record.
(5) Upon the request of the owner, the board of equalization and review, or the board of county
commissioners, any particular lot, parcel, tract, building, structure or improvement be actually
visited and observed to verify the accuracy of property characteristics on record for that
property.
(6) Each lot, parcel, tract, building, structure and improvement be separately appraised by a
competent appraiser, either one appointed under the provisions of G.S. 105-296 or one
employed under the provisions of G.S. 105-299.
(7) Notice is given in writing to the owner that he is entitled to have an actual visitation and
observation of his property to verify the accuracy of property characteristics on record for that
property.
(c) The values, standards, and rules required by subdivision (b)(1) shall be reviewed and approved by
the board of county commissioners before January 1 of the year they are applied. The board of county
commissioners may approve the schedules of values, standards, and rules to be used in appraising real property
at its true value and at its present-use value either separately or simultaneously. Notice of the receipt and
adoption by the board of county commissioners of either or both the true value and present-use value schedules,
standards, and rules, and notice of a property owner's right to comment on and contest the schedules, standards,
and rules shall be given as follows:
(1) The assessor shall submit the proposed schedules, standards, and rules to the board of county
commissioners not less than 21 days before the meeting at which they will be considered by
the board. On the same day that they are submitted to the board for its consideration, the
http://www.ncleg.netlgascri pts/statutes/statutelookup.pl?statute=105-317 1/2
8/22/2016 Article 19
assessor shall file a copy of the proposed schedules, standards, and rules in his office where
they shall remain available for public inspection.
(2) Upon receipt of the proposed schedules, standards, and rules, the board of commissioners
shall publish a statement in a newspaper having general circulation in the county stating:
a. That the proposed schedules, standards, and rules to be used in appraising real
property in the county have been submitted to the board of county commissioners and
are available for public inspection in the assessor's office; and
b. The time and place of a public hearing on the proposed schedules, standards, and rules
that shall be held by the board of county commissioners at least seven days before
adopting the final schedules, standards, and rules.
(3) When the board of county commissioners approves the final schedules, standards, and rules,
it shall issue an order adopting them. Notice of this order shall be published once a week for
four successive weeks in a newspaper having general circulation in the county, with the last
publication being not less than seven days before the last day for challenging the validity of
the schedules, standards, and rules by appeal to the Property Tax Commission. The notice
shall state:
a. That the schedules, standards, and rules to be used in the next scheduled reappraisal of
real property in the county have been adopted and are open to examination in the
office of the assessor; and
b. That a property owner who asserts that the schedules, standards, and rules are invalid
may except to the order and appeal therefrom to the Property Tax Commission within
30 days of the date when the notice of the order adopting the schedules, standards, and
rules was first published.
(d) Before the board of county commissioners adopts the schedules of values, standards, and rules, the
assessor may collect data needed to apply the schedules, standards, and rules to each parcel in the county. (1939,
c. 310, s. 501; 1959, c. 704, s. 4; 1967, c. 944; 1971, c. 806, s. 1; 1973, c. 476, s. 193; c. 695, s. 5; 1981, c. 224;
c. 678, s. 1; 1985, c. 216, s. 2; c. 628, s. 4; 1987, c. 45, s. 1; c. 295, s. 1; 1997-226, s. 5.)
http://www.ncleg.net/gascri pts/statutes/statutelookup.pl?statute=105-317 2/2
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ORANGE COUNTY TAX OFFICE
228 S CHURTON STREET,SUITE 200 PO BOX 8181
HILLSBOROUGH, NORTH CAROLINA 27278
Telephone (919) 245-2100 Fax(919) 644-3332
T. Dwane Brinson, Tax Administrator
10 Frequently Asked Questions on Revaluations
1. WHAT IS A REVALUATION?
Revaluation is a process by which all real property within a taxing jurisdiction (Orange County) is
reappraised to its market value as of a specific revaluation date. It also is sometimes called a
reappraisal or mass appraisal. The tax office, in this process, reappraises all real property(land,
buildings and other improvements to the land) as of the revaluation date. Arms-length market
sales, as well as other market data such as income/expense information and current building
cost information are used to estimate new tax appraisals during this process. The updated tax
appraisal is effective, generally, until the next countywide revaluation. Orange County's next
revaluation date is January 1, 2017, and tax appraisals should reflect market value as of that
date, once the revaluation is completed.
2. WHY CONDUCT A REVALUATION?
The State of North Carolina requires counties to conduct a revaluation at least once every eight
years [NCGS 105-286(a)]. The purpose is to redistribute the tax burden based on current
market data. As time elapses between revaluations, properties may increase or decrease in
market value at different rates. The State of North Carolina charges counties with appraising
property based on current market data as of each revaluation date.
3. WILL ALL PROPERTY VALUES CHANGE?
Most likely,yes. However, not all property values will change at the same percentage. Market
values may have increased or decreased more for some neighborhoods and property types than
for others. One purpose of a revaluation is to ensure appraised values reflect changes that have
occurred in the marketplace since the last countywide revaluation.
4. WHY APPRAISE AT MARKET VALUE?
North Carolina General Statute 105-283 requires counties to appraise all property, both real
and personal property, at its true value in money. True value shall be interpreted as meaning
market value. NCGS 105-284 establishes a uniform assessment standard. This standard in
effect penalizes counties if they are not assessing property at market value as of the date of
revaluation.
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5. WHO WILL DO THE WORK?
The Orange County Tax Office is conducting this revaluation "in-house". This means our own
personnel in the tax office will be evaluating properties and current market data to establish
new tax appraisals. By having the revaluation conducted with county personnel,we feel this will
yield a high-quality revaluation and better tax appraisals.
6. WHEN DOES THE REVALUATION TAKE EFFECT?
Typical countywide revaluations take between 18—24 months to complete. Orange County Tax
Office staff has been reviewing market sales, compiling studies and maintaining a list of current
tax base inventory since the last revaluation,January 1, 2009. Tax office appraisers began
reviewing all properties for the 2017 revaluation in mid-2014. Our current goal is to complete
the process by the fourth quarter of 2016. The resulting values will be effective January 1, 2017.
Real property tax bills mailed in July 2017 will reflect the new revaluation tax appraisal.
7. WHEN CAN I FIND OUT MY NEW TAX APPRAISAL?
New value notices should be mailed to all taxpayers who own real property in Orange County
between January 2017 and March 2017.
8. WILL MY TAXES CHANGE AS A RESULT OF REVALUATION?
Although the value of your property does affect your share of taxes, the actual amount you pay
is determined by budgetary needs of the jurisdictions in which your property is located (county,
city, fire district, etc.). Governing boards of these taxing units decide what services the
jurisdiction will provide in the coming year and how much money the jurisdiction will need to
provide these services. A tax rate is then adopted to generate the necessary revenue.
9. HOW ARE MARKET VALUES DETERMINED?
Various tools are used to extract data from the market. Sales files, sales questionnaires,
Multiple Listing Service, revenue stamps, cost books and ratio studies are a few examples. The
best source for establishing residential market values is arms-length sales of reasonably
comparable properties. Such properties are similar in location, age, style, condition and other
features that may have an effect on market value.
10. WHAT IF I DISAGREE WITH MY NEW TAX APPRAISAL?
Instructions for appeal will be included with your new value notice. The first appeal level is an
informal hearing with an Orange County Tax Office appraiser. Orange County will make
personnel available to hold informal hearings with the property owner. During the informal
hearing, the property record card is reviewed and you may request an actual site visit to your
property. North Carolina General Statutes put the burden of proof on the property owner to
show that a tax appraisal is inaccurate. Keep in mind that the informal review will be to ensure
your property is appraised at 100%of its fair market value as of the revaluation date,January 1,
2017. Therefore, an informal appeal could result in an increase, decrease or no change in
appraisal. A change in appraisal will be considered only if the owner can demonstrate that the
appraised value is more or less than market value as of January 1, 2017, or that it is inconsistent
with appraisals of similar properties. Appraisals cannot be appealed based on (1) percent of
increase/decrease or(2) ability to pay the tax. The Tax Office will send results of informal
appeals by mail. The second level of appeal is to the Orange County Board of Equalization and
Review. North Carolina has a State Property Tax Commission that hears appeals that advance
past the Board of Equalization and Review.
2017 REAPPRAISAL SCHEDULE OF
RULES, STANDARDS AND VALUES
T. Dwane Brinson, CAE
Tax Administrator
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What is a Reappraisal ?
Systematic process of updating real property tax
assessments for market value and present-use value
Appraisal of all properties in Orange County as of a
single date
Primary goal is to equalize tax base
Effective date for Orange County's impending
reappraisal is January 1 , 2017
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Have Been
Where
Started field reviews in mid-2014
Postcard left at residences after each visit
2017 Revaluation Partner Program
Learn and Share revaluation video series (469 total views)
10-question interactive, educational quiz on website
34 quizzes taken, average score of 93
Certificate of Achievement
Summary mailing with 2016 listing forms
Sales bank/appeals process on website
Revaluation presentations
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Where We Are Now
Mostly complete with land pricing
Mostly complete with verifying individual property
characteristics and data
Currently performing "Neighborhood Reviews"
Current sales reports for statistics, edits as necessary
Before and after report for quality control
Commercial properties are being appraised by outside
commercial appraisal company
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Where We Are Going
Schedules of Values submission September 6, 2016 and
corresponding adoption timeline
Final revaluation presentations January 2017
o Challenges of the revaluation
a Tentative results at a high level by classification, district, and other
categories as requested
❑ Notices of new value mailed late-February 2017
Deadline for informal appeals April 28, 2017
❑ Board of Equalization and Review to convene May 1 , 2017
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NNnru VVO-%- Are ping Continued
Post- revaluation customer service, reporting
Extended informal appeals process
Collaborative approach to appeals
Pooled resources with other county departments
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1 h , Schedule ot Values ( `Ni )V)
Tax Assessor must submit SOV to the Board of
County Commissioners ( BOCC)
Ej "Upon receipt", the BOCC shall publish a statement
that such has been submitted and time/place of
public hearing on SOV
❑ 52 -day minimum for full adoption of SOV
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What is the Schedule of Values?
4-year business plan
E, An appraisal "toolbox"
❑ Explains methodology
Shows appraisal system contents, i.e. calculation
tables, codes, etc.
Links to applicable case law
Provides Uniform Standards of Professional
Appraisal Practice ( USPAP)
Does not provide values for specific properties
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The Adoption Process
September 6, 2016: Submission of Schedules of Values to
Board of County Commissioners
September 7, 2016: Advertising notice published in News of
Orange, Chapel Hill News & Durham Herald
September 20, 2016: Public hearing
October 4, 2016: Adoption of Schedules
October 5, 2016: 1St advertising notice
October 121 2016: 2"d advertising notice
October 19, 2016: 3rd advertising notice
October 26, 2016: 4t" advertising notice
November 3, 2016: Last day for taxpayer appeal
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For More Information
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Contact the Orange County Tax Office:
919-245-2100
reval @orangecountync.gov
Visit the revaluation section of our website
D http://www.orangecountync.gov/departments/tax/